SENSEX: SENSEX made a HIGH of 17138 and crashed from their as you all know I had suggested 17120 as THE LEVEL to watch for SENSEX to enter a BULL ZONE
My preference has been a CLOSE above 17120.
As suggested earlier this little phase of last 12 trading days has been difficult for positional traders but from today onwards we would see a clear TREND in either direction.
Today if SENSEX sustains below 18800 it will reach 16636 and a close below 16636 would be considered as a BREAK DOWN from the range.
NIFTY: future NIFTY again was a leader yesterday as it TOUCHED 5203 which was the first level of resistance zone of 5203-5217.
5093 is the level to watch first and then 5041.
A close below 5041 will be dangerous for BULLS and as shown on the NIFTY CHART the recent corrective phase looks like a DIAMOND CHART PATTERN and a break below 5041 will initiate a fresh down move.
4931 is the 61.8% retracement so that could be the TREND DECIDER level for the month of JULY 2012.